HC directs RoC to provide an opportunity of being heard to petitioner before calling for inspection of books account
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- Last Updated on 20 July, 2021
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Case details: Axis Ispat (P.) Ltd. v. Union of India - [2021] 128 taxmann.com 139 (Delhi)
Judiciary and Counsel Details
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- Prathiba M. Singh, J.
- Dayan Krishnan, Sr. Adv. Vikas Mehta, Shakeel Ahmad and Apoorv Khator, Advs. for the Petitioner
- Nidhi Raman, CGSC for the Respondent
Facts of the Case
The Registrar of Companies (RoC) has the power to call for information, an inspection of books, and to conduct an inquiry, however, RoC would have to first call upon the company to give an explanation and also provide them a reasonable opportunity of being heard before issuing show-cause notices.
In this instant case, the Petitioner, Axis Ispat Private Limited, filed the present petition seeking quashing of the 37 show-cause notices, issued against the Petitioner, by the Ministry of Corporate Affairs, Union of India, under various sections of the Companies Act, 2013. A further prayer of the Petitioner is for the quashing of the order sought for inspection of books of account and other statutory records of Petitioner Company.
The Petitioner replied to the order belatedly and owing to the belated reply, RoC had proceeded further, to issue show-cause notice. However, there was a doubt that whether the reply submitted by the petitioner was considered or not by RoC while issuing show-cause notice.
High Court Held
Under these circumstances, in order to ensure that the interest of the petitioner was properly balanced, and adequate opportunity was afforded to the petitioner, RoC was directed to give the opportunity of being heard to the petitioner and after affording a hearing to the petitioner, RoC could proceed further in accordance with the law.
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